OAR 177-098-0060: Prize Payment

(1) Selection of Payment Type: Except as provided otherwise in section (2) of this rule, Mega Millions Jackpot Prizes shall be paid, at the election of the player made no later than 60 days after validation of the prize, with either a per winner annuity or cash payment. If the payment election is not made by the player within 60 days after validation, then the prize shall be paid as an annuity prize. An election made after validation is final and cannot be revoked, withdrawn, or otherwise changed. (2) Multiple Claimants: Unless an exception is approved, when a Jackpot Prize is claimed jointly under OAR 177-046-0110(5), each claimant must select the same payment type, either cash value option or annuity. (3) Share of the Jackpot Prize: Shares of the Jackpot Prize shall be determined by dividing the amount available in the Jackpot Prize Pool equally among all tickets with winning game plays of the Jackpot Prize in all participating lotteries. The prize money allocated from the current Mega Millions Grand Prize Pool for the Mega Millions Jackpot Prize will be divided equally among all Mega Millions Jackpot Prize winning plays in all participating lotteries. (4) Cash Value Option: In the event of a prize winner who selects the cash value option, the prize winner’s share shall be paid in a single payment upon completion of internal validation procedures. The cash value option shall be determined by the Mega Millions lotteries. (5) Initial and Annual Annuitized Payments: If an annuity is chosen, it shall be paid in 30 consecutive graduated annual installments by the Lottery, with graduated annual installments as defined by the Mega Millions Lotteries in the Mega Millions Finance and Operations Procedures . The initial payment shall be paid upon completion of internal validation procedures. The subsequent twenty-nine (29) payments shall be paid annually to coincide with the month of the federal auction date at which the bonds were purchased to fund the annuity. All such payments shall be made within seven (7) days of the anniversary of the annual auction date. (6) Jackpot Prizes and Increases: The Mega Millions Lotteries may set a minimum guaranteed annuity Jackpot Prize amount that shall be advertised by the selling lotteries as the starting guaranteed annuity Jackpot Prize amount. (7) Rollover of Jackpot Prize: If, in any Mega Millions drawing there are no Mega Millions plays that qualify for the Mega Millions Jackpot Prize category, the portion of the prize fund allocated to such Jackpot Prize category shall remain in the Mega Millions Jackpot Prize category and be added to the amount allocated for the Mega Millions Jackpot Prize category in the next consecutive Mega Millions drawing. (8) Funding the Annuity: Funds for the initial payment of an annuitized prize or cash value option prize shall be made available by MUSL for payment by the Party Lottery on a schedule approved by the Product Group. If individual shares of the Mega Millions Jackpot Prize Pool funds held to fund an annuity is less than $250,000, the Product Group, in its sole discretion, may elect to pay the winners their share of the cash held in the Mega Millions Jackpot Prize Pool. Neither MUSL nor the party lotteries shall be responsible or liable for changes in the advertised or estimated annuity prize amount and the actual amount purchased after the prize payment method is actually known to MUSL. (9) Lack of Available Funds: If necessary, when the due date for the payment of a prize occurs before the receipt of funds in the prize pool trust sufficient to pay the prize, the transfer of funds for the payment of the full cash value option amount may be delayed pending receipt of funds from the Party Lotteries or other lotteries participating in the Mega Millions Game. A Party Lottery may elect to make the initial payment from its own funds after validation, with notice to MUSL. (10) Death of Winner: In the event of the death of a lottery winner during the annuity payment period, unless prohibited by state law, the MUSL Finance Committee, in its sole discretion excepting a discretionary review by the Product Group, upon the petition of the estate of the lottery winner (the "Estate") or the persons identified on the winner’s Beneficiary Designation form (BDF), whichever is applicable, to the state lottery of the state in which the deceased lottery winner purchased the winning ticket, and subject to applicable federal, state, or district laws, may make payment to the Estate or the designated beneficiary of the discounted present value of the remaining annuitized prize payments. If such a determination is made, then securities and/or cash held to fund the deceased lottery winner's annuitized prize may be distributed to the Estate or the persons on the BDF. The identification of the securities to fund the annuitized prize is at the sole discretion of the Finance Committee or the Product Group. (11) No Recourse: If a party lottery purchases or holds the prize payment annuity for a prize won in that jurisdiction, that party lottery’s game rules, and any prize payment agreement with the prize winner, shall indicate that the prize winner has no recourse against MUSL or any other party lottery for payment of that prize. (12) Prize Payments: All prizes are paid through the Lottery that sold the winning play(s), and at the discretion of the Selling Lottery may be paid by cash, check, warrant, or electronic transfer. The Lottery may begin paying set or low-tier prizes after receiving authorization to pay from the MUSL central office. (13) Rounding of Prize Payments: Annuitized payments of the Mega Millions Jackpot Prize or a share of the Mega Millions Jackpot Prize may be rounded to facilitate the purchase of an appropriate funding mechanism. Breakage on an annuitized Mega Millions Jackpot Prize win shall be added to the first payment to the winner or winners. Prizes other than the Jackpot Prize that, under these rules, may become single-payment, pari-mutuel prizes, may be rounded down so that prizes can be paid in multiples of whole dollars. Breakage resulting from rounding these prizes shall be carried forward to the prize pool for the next drawing. (14) One Prize per Game Play: The holder of a winning Mega Millions play may win only one (1) prize per play in connection with the winning numbers drawn for the Mega Millions game and shall be entitled only to the prize won by those numbers in the highest matching prize category. (15) Liability Discharged Upon Payment: All liability for a Mega Millions prize is discharged upon payment of a prize claim. (16) Claim Expires in One Year: Claims for all prize categories, including the Jackpot Prize, shall be submitted within one year after the date of the drawing in accordance with this division of rules, OAR 177-046-0110 , and 177-070-0025(4) .